Revised export guidelines for non oil export any person intending to export non oil products out of nigeria shall in the first instance, process the nigerian export proceeds form form nxp or any other form so prescribed through an authorized dealer bank irrespective of the value and whether or not payment is involved. The impact of exchange rate on nigeria nonoil exports. He also found non oil export does not granger cause economic growth in nigeria. The study used per capita income as proxy for economic development and expressed it as a function of non oil export volume, trade. Oct 24, 2016 nigeria unserious about nonoil exports. This can be done the diversification of the export base of the local economy from crude oil export to nonoil exports to ensure that the economy. Non oil export product, economic growth, ordinary least square, diversification, nigeria. The role of non oil export in the economic development of. Time series analysis of nonoil export demand and economic. Non oil export in nigeria questions export from nigeria.
Admittedly, a series of recent academic papers have touched on sustainability of exchange rate in relation to general export oil and non oil forgetting the fact that the quantity and price of. Nigeria joined the organisation of petroleum exporting countries opec in 1971 and established the nigerian national petroleum company nnpc in 1977, a state owned and controlled company which is a major player in both the upstream and downstream sectors. Dynamic relationships among nonoil revenue, government. Further, the central bank of nigeria should as an operational guideline, impose on commercial banks to set aside a certain amount of money from their yearly profit for financing of non oil export as it is the case for small and medium scale equity scheme. The role of financial sector in the promotion of non oil. The nigerian economy has for decades leaned on the fragile leg of crude oil. May 08, 2016 an export consultant and chief executive officer of multimix academy, mr. Central bank of nigeria, changing structure of the nigerian economy 2000 and. Npnen is a body setup to ensure that the voices of non oil exporters would continue. This is with a view to, determine how five selected independent variables non oil commodities. Nigeria has recorded a significant rise in its nonoil export, with agricultural goods increasing the countrys foreign exchange earnings. The impact of non oil export on nigeria economic growth 19812016.
The effects of the recent global economic crises on nigerias economy have reaffirmed the urgent need for economic diversification in the country. How to export goods from nigeria to other countries. In carrying out this study, secondary data were collected and empirical analysis was made. Oec nigeria nga exports, imports, and trade partners. This is why pdf ll launched the network of practicing non oil exporters of nigeria npnen at its neca event. Nigeria unserious about nonoil exports vanguard news. Nigeria government revenues 20102019 data 20202022. Though, nigeria drive for non oil export diversification has been intensified, yet, the exporting smes which are main driver of the economic growth engine are under capacitated due to the volatile business environment stressors and competitiveness issues hinged on strategic nexus of the sme private sector into the non. Obiora madu, described the rush for non oil exports as a delicate situation for nigeria, which must be handled carefully.
How to export from nigeria commodities export in nigeria non oil export in nigeria made easy for nigerians. Although the nigeria government has over the years engaged in international trade and has been designing trade and. This paper tries to examine the impact of non oil export on economic growth in nigeria. Notwithstanding, nigeria is today identified as one of the 30 of. As indicated by the behaviour of the trends, the growth in the value of non oil exports fluctuated actively while the exchange rate was on a steady path from 1970 to 2015. Miscellaneous base metal goods represents the fastest grower among the top 10 export categories, up by 239,302% from 2018 to 2019. He noted that the zone had enormous nonoil resources, which could be developed to boost export earnings. The decline in price of oil in recent years has led to a decrease in the funds available for distribution to the three tiers of government in nigeria. Impact nonoil export on economic growth of nigeria mensch. Munich personal repec archive the impact of non oil export on domestic investment in nigeria omojolaibi, joseph and mesagan, ekundayo and olaifa, adeyemi university of lagos, nigeria 2 september 2015 online at mpra paper no. Although no country is immune to such global crises, the over reliance on oil export revenue by nigeria. Nigeria endured a disastrous year of oil price crashes between 2015 and 2016 respectively. While agricultural produce accounted for 33 and 42 per cent of total income from non oil.
Exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Nigeria s proven oil reserves are estimated to be 35 billion barrels, natural gas reserves are trillion feet and her crude oil production is around 2. Impact of exchange rate volatility on nonoil export. This page provides nigeria exports actual values, historical data, forecast, chart, statistics, economic calendar and news. The mono economy nature of nigeria and the need to diversify the economy form part of the motivation for the study. When it comes to exporting any products from nigeria to other countries, you have to research everything about the export business, as well as the goods you plan to export. Pdf the nigerian economy has for decades precariously leaned on the fragile leg of crude oil. Exchange rate volatility and nonoil exports in nigeria. In second place for improving export sales was aircraft and spacecraft via a 221.
Closing its 5year activities in nigeria, it recently held a policy dialogue and an award ceremony, in abuja, with a view to encouraging key plays in the nonoil export sector to sustain the. The study investigates the diversification of non oil export products as a precondition for. Overcoming challenges of nonoil export trade punch. Nepc, pdf ii boost nonoil export nigeria news update. Pdf crude oil and the nigerian economic performance. This study is to examine the role of non oil export on economic development of nigeria and the objectives are as follows. To achieve the objectives of the programme, the government sequentially put in place a number of policy reforms and incentives to encourage the production and export of non oil tradeable as well as broadening nigeria s export market. This project work focuses on the role of non oil export in the economic development of nigeria, specifically on the role of the non oil export. This study investigates the specific impact of the nonoil exports to the growth of nigerian economy using data between 1981 and 2012 the study adopted the. This research analyze the impact of non oil export in nigeria economy, taking proper analysis on various ways and means put forward by the government of nigeria to improve non oil export earnings since 19812016. Potentials for diversifying nigerias nonoil exports to non. Nigeria is the 49th largest export economy in the world and the 124th most complex economy according to the economic complexity index eci. This study examined the role of non oil exports in the economic growth of nigeria.
Sorsa 1999 analyses algerian non oil export promotion issues in presence of oil sector dominancy of the economy and revealed that appreciation of real exchange rate is the main factor that impedes non oil export growth and its diversification. Nigeria nonoil export prospects english the world bank. Service trade and nonoil export in nigeria mmaduabuchukwu. The evolution of the export structure is described. Mar 22, 2020 closing its 5year activities in nigeria, it recently held a policy dialogue and an award ceremony, in abuja, with a view to encouraging key plays in the non oil export sector to sustain the. The nonoil export stimulation facility nesf was introduced by the central bank of nigeria cbn to diversify the revenue base of the economy and to expedite the growth and development of the nonoil export sector. The study examines the contribution of foreign direct investment fdi to the performance of non oil exports in nigeria within the framework of the export led growth elg hypothesis. Pdf the nexus of nonoil export and economic growth. The need for federal, states and local governments to generate adequate revenue from other sources. The impact of nonoil export on domestic investment in nigeria. The facility will help redress the declining export financing and reposition the sector to increase its contribution to. The nonoil export stimulation facility esf was established by the central bank of nigeria cbn to diversify the economy away from oil and to expedite the growth and development of the nonoil export sector. He thanked pdf ll and dfid for supporting the initiative to launch network of practicing non oil exporters of nigeria npnen. Impact of nonoil export on economic growth in nigeria.
The performance of the non oil export sector in the past three decades leaves little or nothing to be desired, in spite of the efforts to promote non oil exports in nigeria. The recent fall in global prices of crude oil triggered a sharp decline in the countrys revenue and foreign exchange earnings. Diversification of non oil export product as a precondition for acceraleted real economic growth in nigeria dr. How nigeria recorded its highest nonoil exports ever in. Doing a survey prior to shipping goods and starting your own business is a very reasonable decision. This page provides nigeria government revenues actual values, historical data, forecast, chart, statistics. Odularu 2008 also reported that in the year 2000, crude oil and gas accounted for more than 98% of nigeria s export and about 83% of federal government revenue. Data were analysed using descriptive statistics, correlation analysis and regression analysis. Overcoming challenges of nonoil export trade punch newspapers.
The nigerian economy before the discovery of crude oil. Pdf contribution of non oil exports to economic growth. A study of agricultural and mineral resources exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Role of non oil exports in the economic growth of nigeria. Exports thrive on a tripod of development, promotion and capacity building.
Potentials for diversifying nigerias nonoil exports to. Non oil exports are commonly agriculture based, with no affiliation with the exhaustible dominant commodity crude oil. This means non oil exports contributed significantly to economic growth in nigeria. Introduction as one of the most efficient tools for growth and development, export promotion policy has been taken by many countries since 1970. A deep dive into the data revealed that a huge component of nigeria s non oil export figures were re exports. Adesoji adetunji adenugba, sotubo oluwatimilehin dipo.
This report examines the export potential of nigerias principal nonoil sectors, agriculture and manufacturing. Download the full research work in doc editable format. The causes and consequences of the neglect of the non oil export shall be discussed in detail as well as the trend examined since. Osuntokun and edordu 2001, in their research on the potentials for diversifying nigerias nonoil export to nontraditional markets found out that nigeria could not fully utilize its potential because the implementation of export promotion policies followed key market concentration strategy i. Before the beginning of crude oil exports in 1978, agriculture accounted for about 30% of the gross domestic product gdp and 80% of total exports. Nigerias top 10 exports are highly concentrated accounting for 99% of the overall value of the countrys global shipments. Investigating the nigerian non oil exports godwin ukaiji okpokpo economic management department, centre for management development, shangisha, lagos nigeria innocent abanum ifelunini department of economics, university of nigeria, nsukka, nigeria fidelis osuyali. The impact of exchange rate on nigeria nonoil exports hrmars. Looking beyond oil gdp has slowed, driven by lower oil sector growth and a weaker non oil sector nigeria s economy grew by 2. Non oil export was a total of n630 billion compared to n344 billion a. Diversification of nonoil export product as a precondition. The role of exports in economic growth and the relationship. Without oil export, nigerias export to the us was less than that of lesotho a nation.
An export consultant and chief executive officer of multimix academy, mr. Cassava, groundnut, millet, yam and maize contributes to nigeria. As presented in table 2, the major agricultural exports produced in nigeria consist of cocoa beans, rubber, fishshrimpand cotton. For question,comment,suggestion,b2b or buysell enquiry. The study investigates effect of non oil export on the economic development of nigeria. The impact of nonoil export on the nigerian economy. Pdf determinants of nonoil export and economic growth in. The impact of commercial bank credit on nonoil export. To achieve the objectives of the programme, the government sequentially put in place a number of policy reforms and incentives to encourage the production and export of nonoil tradeable as well as broadening nigerias export market. Nonoil export, foreign direct investment and infrastructural. Effects of nonoil export on the economic development of nigeria. Despite the potential in the non oil export segment, lack of price competitiveness due to poor capacity, high cost of.
Real gross domestic product, domestic crude oil consumption and crude oil export in nigeria, the period of his study like some other previous ones were different from this study. Nigerians and the leadership are now awakened to the inevitability of non oil export for survival and sustainable development. Pdf the paper was set to examine the relationship between different aspects of service trade and non oil export in nigeria as well as assess the. Nigerian economy, which is abundantly endowed with natural and. The impact of oil on nigerias economic policy formulation preamble economic policy is the actionstatement of the government pertaining to particular sectors of the economy, describing the intended objectives and how to achieve them. Pdf the impact of nonoil export on the nigerian economy. This is because despite government efforts, the growth performance of nigeria nonoil export has been very slow. Ironically, a cursory look at the trends of exchange rate and non oil exports as shown in figure 1 reveals that there is no correlation between exchange rate and non oil exports in nigeria. This is why pdf ll launched the network of practicing nonoil exporters of nigeria npnen at its neca event. The result also revealed that exchange rate had a negative though not significant relationship with gdp which is in line with economic theory. Available evidence in nigeria supports that the bulk of fdi inflow into the country goes to the oil sector of the economy. Non oil export, economic growth, ordinary least square, diversification, nigeria introduction the growth of nigeria s non oil exports has been sluggish. Nedp is a private sectorled project initiated to support the change begin with me agenda of the president mohammed buhariled federal government of nigeria to diversify the economy, enrich and empower nigerians.
Since the financial sector, in general and the banks in particular, are the nere centers of the nigeria economy, they are therefore expected to play important role in promoting nigerias nonoil exports nigeria needs the financial institution to contribute, they have to operate so many loans scheme and contribute through stock exchange market. Npnen is a body setup to ensure that the voices of nonoil exporters would continue. That is, odularus period of study was1970 to 2005 while this present study covers 2000 to. The nonoil export stimulation facility nesf was introduced by the central bank of nigeria cbn to diversify the revenue base of the economy and to expedite the. The assessment of the trend and patterns of activities in the non oil sector of nigeria revealed that. The essence of this work has been to determine the effect of non oil export on economic growth in nigeria, during the period of 19862010. But as they say, you need to dig deeper to see the facts behind the figures. Awolowo at the non oil export conference and awards neca. And non oil export is one major way to do so, stressed mr. The nonoil export stimulation facility esf was established by the central bank of nigeria cbn to diversify the economy away from oil and to expedite the growth and development of the nonoil export.
Finally, given that nigeria is an oil dependent economy with the bulk of government revenue coming from oil export, it is reasonable to recommend that government should diversify the economy away from crude oil and natural gas to non oil revenue generating sectors such as agriculture, mining, services, and spend more on non oil sector and thus. Apr 14, 2020 nigerias top 10 exports are highly concentrated accounting for 99% of the overall value of the countrys global shipments. Effects of nonoil export on the economic development of. The transformation of nigeria from a net exporter of agricultural pro ducts to a largescale importer of the same. Nonoil export and economic growth in nigeria 19802011. The exportation of non oil products from agriculture, construction, solid minerals and services has significant role to play in inducing the economic growth of any developing economy.